=20

Canada Revenue Agency

www.cra.gc.ca

Skip to = content |=20 Skip to = institutional=20 links

Common menu bar links

Institutional links

What's=20 new

Children's=20 Fitness Tax Credit

Information for organizations providing prescribed programs of = physical=20 activity

Although the Canada Revenue Agency (CRA) administers the children's = fitness=20 tax credit, organizations are in the best position to determine if the = programs=20 they offer qualify as prescribed programs of physical activity for the = purposes=20 of the credit. This page contains information that will help you = determine=20 whether the programs you offer meet the requirements for the tax credit, = and=20 will also help you calculate the amount of eligible fitness = expenses.

Note

A receipt does not guarantee the eligibility of a program.

Prescribed programs of physical activity

An eligible fitness expense must be for the cost of registration or=20 membership of an eligible child in a prescribed program of physical = activity.=20 Generally, such a program must:

be ongoing (either a minimum of eight weeks long or, for = children's camps,=20 five consecutive days long);
be supervised;
be suitable for children; and
include a significant amount of physical=20 activity that contributes to cardio-respiratory = endurance,=20 plus one or more of: muscular strength, muscular endurance, = flexibility, or=20 balance.

Under the Income Tax Regulations, physical activity = includes:

horseback riding; and
if the child is eligible for the disability tax = credit,=20 activities that result in movement and in an observable expenditure of = energy=20 in a recreational context.

If a child rides on, or in, a motorized vehicle as an essential part = of an=20 activity, that activity does not qualify as a physical activity for the=20 children=92s fitness tax credit.

The Children's=20 Fitness Tax Credit Eligibility Checklist contains additional = information=20 about the types of activities that constitute "physical activity" for = purposes=20 of the credit. Reviewing this information and answering the questions in = the=20 checklist will help you determine whether a particular program qualifies = for the=20 credit. For more information about the criteria for prescribed programs = of=20 physical activity, see the Regulations.

Calculating the amount of = eligible fitness=20 expenses

To be eligible for the children's fitness tax credit, expenses must = be for a=20 child who, at the beginning of the year in which the expenses are paid, = is under=20 16, or is under 18 and is eligible for the disability tax credit. The = expenses=20 must be for the cost of the child=92s registration or membership in a = prescribed=20 program of physical activity.

Note

It is not an organization=92s responsibility to determine whether a = child is=20 eligible for the disability tax credit. If a parent tells an = organization that a=20 child is eligible for the disability tax credit, this should be = accepted. In=20 determining the eligible fees for such a child, an organization needs to = recognize that physical activity includes activities that result in = movement and=20 in an observable expenditure of energy in a recreational = context.

Registration and membership fees include the costs = of=20 administration, instruction, and the rental of facilities. If part of = the fees=20 paid by parents is for accommodation, travel, food, or beverages (e.g., = room and=20 board at a fitness camp), then this part must be subtracted from the = total=20 registration and membership fee paid to the organization.

Example

You operate an away-from-home hockey camp for children. Parents pay = an=20 all-inclusive registration fee of $700 for the one-week camp. The camp = provides=20 hockey pucks and jerseys, which are shared during the camp but kept by = the=20 organization at week's end. Children must bring all other necessary = equipment=20 with them and parents are responsible for transporting the children to = and from=20 the camp. The $700 fee includes $200 for accommodation and $150 for=20 meals.

The part of the fee that is eligible for the children's = fitness tax=20 credit is $350 ($700 - $200 - $150).

Is the cost of uniforms eligible for the children's fitness = tax=20 credit?

Part of a registration or membership fee may be for the cost of = equipment or=20 uniforms (e.g., hats, shirts, or shorts) that are provided for = participants to=20 use in the program. At the end of the program, the equipment or the = uniforms=20 normally have little or no resale value, in which case the part of the=20 registration or membership fee for their cost is included in the = eligible fees=20 for this credit.

In other situations, in addition to paying registration or membership = fees,=20 parents will buy uniforms or equipment from third-party suppliers or = through the=20 organization offering the program. In these situations, the purchase = price for=20 the uniforms or equipment is not an eligible fitness expense.

Mixed-use facilities or programs

Providing that all other requirements are met (i.e., program is = ongoing,=20 supervised, and suitable for children as described under =93Prescribed = programs of=20 physical activity=94 above), the full cost of a child's=20 membership in an organization (including a club, association, = or=20 similar organization) will be eligible for the credit if more = than 50%=20 of the activities offered to children by the organization = include a=20 significant amount of physical activity.

If the 50% test is not met, a receipt can be issued for a = prorated=20 amount, which will represent the percentage of activities = offered to=20 children by the organization that include a significant amount of = physical=20 activity.

Note

If your organization provides family memberships, the part of the = cost that=20 is for the child=92s participation in a prescribed program of physical = activity=20 may be eligible for the tax credit.

In circumstances where the participant in the program can select from = among=20 various activities, the full cost of a child=92s registration in = a=20 program offered by a club, association, or similar organization = will be=20 eligible for the credit if (in addition to being ongoing, supervised, = and=20 suitable for children):

more than 50% of the activities offered to = children=20 include a significant amount of physical activity; or =
more than 50% of the available program time is = devoted to=20 activities that include a significant amount of physical = activity.

If neither of these 50% tests is met, a receipt can be issued for a=20 prorated amount, which will represent the percentage of = activities offered to children by the organization that include a = significant=20 amount of physical activity, or the percentage of = program time=20 that is devoted to such activities.

Example 1 =96 Membership

A child=92s annual membership at a local health club entitles the = child to=20 participate in various activities. If more than 50% of these activities = include=20 a significant amount of physical activity, a receipt can be issued for = the=20 membership fee. If this 50% test is not met, a receipt can be issued for = a=20 prorated amount, based on the percentage of the activities offered to = children=20 that include a significant amount of physical activity.

Example 2 =96 Program registration

Registration in a program offered by a local boys and girls club = entitles a=20 child to participate in a wide range of activities, some of which = include a=20 significant amount of physical activity (e.g., biking club, weekend hip = hop=20 dances, open swim or gym, ski club) and some of which do not (e.g., = career=20 planning, board games, reading club). A receipt for the full amount of = the=20 program registration cost can be issued if more than 50% of the = available=20 activities include a significant amount of physical = activity,=20 or if more than half of the club's scheduled time=20 (i.e., total program hours) is devoted to activities that include a = significant amount of physical activity.

If neither of these 50% tests is met, a receipt can be issued for a = prorated=20 amount. That amount can be based on either the percentage of the = activities=20 offered to children by the organization that include a significant = amount of=20 physical activity, or on the = percentage of the=20 time spent on activities that include a significant amount of physical = activity.=20 For example, if 20% of the activities that are offered include a = significant=20 amount of physical activity, but 30% of the available program time is = devoted to=20 these activities, a receipt can be issued for 30% of the program = registration=20 cost.

Issuing receipts

You should issue a receipt for income tax purposes representing the = amount of=20 eligible fitness expenses paid in the calendar year. A = receipt=20 for amounts paid in 2007 should be issued for 2007 even if the activity = takes=20 place in 2008. A receipt should contain the following information:

organization's name and address
name of the eligible program or activity
amount received, date received, amount that is eligible for the = children's=20 fitness tax credit (eligible fees)
full name of the payer
full name of the child, and the child's year of birth
authorized signature

Note
An authorized signature is not required for = electronically generated receipts.

Date=20 Modified: 2008-02-01

Top of Page

Important = Notices

Common menu bar links

Institutional links

What's=20 new

Children's=20 Fitness Tax Credit

Information for organizations providing prescribed programs of = physical=20 activity

Prescribed programs of physical activity

Calculating the amount of = eligible fitness=20 expenses

Issuing receipts